Sasbadi Annual Report 2020

81 ANNUAL REPORT 2020 FINANCIAL STATEMENTS (continued) 2. Significant accounting policies (continued) (f) Intangible assets (continued) (iv) Amortisation Goodwill with indefinite useful lives is not amortised but are tested for impairment annually and whenever there is an indication that they may be impaired. Other intangible assets are amortised from the date that they are available for use. Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets. The estimated useful lives for the current and comparative periods are as follows: Intellectual properties 15 years Development costs 10 years Software 10 years Amortisation methods, useful lives, and residual values are reviewed at the end of each reporting period and adjusted, if appropriate. (g) Investment properties Investment properties are land and/or buildings which are held to earn rental income or for capital appreciation or for both. Investment properties are stated at cost less accumulated depreciation and impairment losses. The depreciation policy adopted for investment properties is similar to property assets under property, plant and equipment as disclosed under Note 2(d) to the financial statements. Cost includes expenditure that is directly attributable to the acquisition of the investment property includes the cost of material and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs. An investment property is derecognised when either it has been disposed of or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. The difference between the net disposal proceeds, if any, and the net carrying amount is recognised in profit or loss in the period of retirement or disposal. (h) Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is calculated using the first-in first-out and weighted average method and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of work-in-progress and finished goods, cost includes an appropriate share of production overheads based on normal operating capacity.